Porsche Can’t Escape Lawsuit From Defunct Auto Tech Startup

Porsche AG’s venture capital arm can’t avoid a lawsuit claiming it interfered with a tech startup’s ability to secure additional outside funding in two financing rounds, causing the startup to shut down.

Zync Inc., which Porsche invested $2.9 million in through a convertible note, adequately alleged the automaker knew the startup was desperate for cash and instructed its designated director on Zync’s board to reject additional financing for its own gain, the Delaware Chancery Court said May 29.

Porsche allegedly knew that Christian Knörle, a Porsche employee placed on Zync’s board, wouldn’t approve funding deals without Porche’s approval. ...